Gaza's Liquidity Crisis Hampers Merchants

The liquidity crisis in Gaza is causing merchants to refuse old and worn-out currency, which complicates the use of money and hampers commercial transactions. This leads to an accumulation of unusable cash in homes and stores. The problem is further worsened by rising prices of goods and a decline in purchasing power, as well as a loss of confidence in the national currency due to some old banknotes being rejected. This situation affects the markets and contributes to economic stagnation. The report also indicates that transitioning to electronic payments faces difficulties due to the destruction of infrastructure, highlighting that the crisis is not only about the availability of money but also about the ability to use it effectively.

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